Can you solve this using Excel? Thank you.

What is the present worth of Option 1?

What is the present worth of Option 2?

Leonard, a company that manufactures explosion-proof motors, is considering two alternatives for expanding its international export capacity. Option 1 requires equipment purchases of $900,000 now and $560,000 two years from now, with annual M\&O costs of $79,000 in years 1 through 10 . Option 2 involves subcontracting some of the production at costs of $280,000 per year beginning now through the end of year 10. Neither option will have a significant salvage value. Use a present worth analysis to determine which option is more attractive at the company's MARR of 20% per year. (Note: Check out the spreadsheet exercises for new options that Leonard has been offered recently.)